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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. When lending standards are tightened, lenders typically require

A) a waiver of the Equal Credit Opportunity Act.
B) a lower loan-to-value ratio.
C) a balloon payment after 5 years.
D) a higher loan-to-value ratio.

2. Licensee A and Licensee B work for a principal broker for ABC Realty. For Licensee A, the principal broker supervises the work as a listing/buyer's agent, collects commissions, and pays out based on their commission split agreement. Licensee A works from home and attends training meetings at the office. Licensee B works 8 a.m. to 4 p.m. in the ABC Realty office for relocations, showing local properties to relocating clients.
Licensee B is licensed to show homes and submits offers for purchase from individuals who are relocating but is paid by salary based on hours worked, with a bonus for production. What are Licensee A and B's relationships with ABC Realty?

A) Licensee A is an employee and Licensee B is a contractor.
B) Licensee A and Licensee B are both contractors.
C) Licensee A and Licensee B are both employees.
D) Licensee A is a contractor and Licensee B is an employee.

3. A ranch house with a double garage is being valued. The house next door, which is similar except that it lacks a garage and has an outside deck, was sold last month for $138,000. Experience in that area shows that a two- car garage is probably worth $10,000 to buyers, while in general, they will pay only $500 extra for a deck.
The ranch house is most likely to sell for around

A) $128,500
B) $147,500
C) $123,500
D) $148,500

4. When a licensee is hired to find a tenant for a summer vacation home on Cape Cod built in 1950, for a period of two weeks,

A) The Massachusetts Fair Housing Law does not apply.
B) An unlicensed assistant may handle the transaction.
C) The Massachusetts Lead Law is not applicable.
D) There is no limit on the amount of the security deposit.

5. A broker has been engaged to locate a property for a buyer. The broker has determined that a suitable property for the buyer is for sale and is owned by the broker's cousin. The broker has not informed the buyer of the broker's relationship with the owner. If the buyer purchases the property under these circumstances, the broker is

A) Not violating the license law because the broker in this situation has no duty of disclosure.
B) Violating the license law because it is illegal to purchase family property for a principal.
C) Not violating the license law because a relative's interest is an exception to the fiduciary duty rule.
D) Violating the license law because a relative's interest shall be made known to all parties.

Solutions: